§1942. Purposes of loans; grants for pollution abatement and control projects, limitations; nonsupervised accounts
(a) Loans may be made under this subchapter for (1) paying costs incident to reorganizing the farming system for more profitable operation, (2) purchasing livestock, poultry, and farm equipment (including equipment which utilizes solar energy), (3) purchasing feed, seed, fertilizer, insecticides, and farm supplies and to meet other essential farm operating expenses including cash rent, (4) financing land and water development, use, and conservation, (5) without regard to the requirements of section 1941(a)(2) and (3) of this title, to farmers or ranchers to finance outdoor recreational enterprises or to convert to recreational uses their farming or ranching operations, including those heretofore financed under this chapter, (6) enterprises needed to supplement farm income, (7) refinancing existing indebtedness, (8) other farm and home needs including but not limited to family subsistence, (9) loan closing costs, (10) for assisting farmers or ranchers in effecting additions to or alterations in the equipment, facilities, or methods of operation of their farms or ranches in order to comply with the applicable standards promulgated pursuant to section 655 of title 29 or standards adopted by a State pursuant to a plan approved under section 667 of title 29, if the Secretary determines that any such farmer or rancher is likely to suffer substantial economic injury due to such compliance without assistance under this paragraph, (11) assisting farmers and ranchers in reducing their dependence on nonrenewable energy resources through the development and construction of solar energy systems, including the modification of existing systems, (12) training in maintaining records of farming and ranching operations for limited resource borrowers receiving loans under section 1934 of this title, and (13) borrower training under section 2006a of this title. For the purposes of this subchapter, the term "solar energy" means energy derived from sources (other than fossil fuels) and technologies included in the Federal Non-Nuclear1 Energy Research and Development Act of 1974, as amended [42 U.S.C. 5901 et seq.].
(b) Loans may also be made under this subchapter to residents of rural areas without regard to the requirements of clauses (2) and (3) of section 1941(a) of this title to operate in rural areas small business enterprises to provide such residents with essential income.
(c) Loans may also be made to eligible applicants under this subchapter for pollution abatement and control projects in rural areas.
(d) The Secretary may make grants, not to exceed $25,000,000 annually, to eligible applicants under this subchapter for pollution abatement and control projects in rural areas. No such grant shall exceed 50 per centum of the development cost of such a project.
(e) Notwithstanding any other provision of this chapter, the Secretary shall reserve not more than 10 percent of any loan made under this subchapter or $5,000 of such loan, whichever is less, to be placed in a nonsupervised bank account which may be used at the discretion of the borrower for necessary family living needs or purposes not inconsistent with previously agreed upon farming or ranching plans. If the borrower exhausts this reserve, the Secretary may review and adjust the farm plan with the borrower and consider rescheduling the loan, extending additional credit, the use of income proceeds to pay necessary farm and home and other expenses, or additional available loan servicing.
(Pub. L. 87 128, title III, §312, Aug. 8, 1961,
References in Text
For definition of "this chapter", referred to in subsecs. (a) and (e), see note set out under section 1921 of this title.
The Federal Nonnuclear Energy Research and Development Act of 1974, as amended, referred to in subsec. (a), is Pub. L. 93 577, Dec. 31, 1974,
Amendments
1992-Subsec. (a). Pub. L. 102 552, §516(f)(2), repealed amendment by Pub. L. 102 237, §501(b). See 1991 Amendment note below.
Pub. L. 102 552, §516(f)(1)(A), made technical correction to directory language of Pub. L. 101 624, §1818(b). See 1990 Amendment note below.
1991-Subsec. (a). Pub. L. 102 237, §501(b), which directed the substitution of "systems (for purposes of this subchapter, the term 'solar energy' means energy derived from sources (other than fossil fuels) and technologies included in the Federal Nonnuclear Energy Research and Development Act of 1974) (42 U.S.C. 5901 et seq.), (12) training in maintaining records of farming and ranching operations for limited resource borrowers receiving loans under section 1934 of this title, and (13) borrower training under section 2006a of this title." for "'systems.' and all that follows", could not be executed because "systems." does not appear in subsec. (a) was repealed by Pub. L. 102 552, §516(f)(2). See Construction of 1991 Amendment note below.
1990-Subsec. (a). Pub. L. 101 624, §1818(b), as amended by Pub. L. 102 552, §516(f)(1)(A), added cl. (13).
1985-Subsec. (a). Pub. L. 99 198, §1306, added cl. (12).
Subsec. (e). Pub. L. 99 198, §1307, added subsec. (e).
1980-Subsec. (a). Pub. L. 96 438 added cl. (11).
1978-Subsec. (a). Pub. L. 95 334, struck out "individual" after "title, to".
1977-Subsec. (a). Pub. L. 95 113 inserted parenthetical provision extending the section to include farm equipment which utilizes solar energy and inserted definition of "solar energy".
1972-Subsec. (a). Pub. L. 92 419, §§120(b), 121(1), (2), substituted "section 1941(a) for "section 1941", designated existing provisions as subsec. (a), and added cl. (10).
Subsecs. (b) to (d). Pub. L. 92 419, §121(3), added subsecs. (b) to (d).
1968-Pub. L. 90 488 struck out from cl. (4) the concluding phrase, "including recreational uses and facilities", added cls. (5) and (6), and redesignated former cls. (5) to (7) as (7) to (9), respectively.
1962-Pub. L. 87 703 authorized, in cl. (4), loans to be made for recreational uses and facilities.
Effective Date of 1992 Amendment
Section (f)(1)(B) of Pub. L. 102 552 provided that: "The amendment made by subparagraph (A) [amending this section] shall take effect as if included in the Food, Agriculture, Conservation, and Trade Act of 1990 [Pub. L. 101 624] at the time such Act became law."
Effective Date of 1977 Amendment
Amendment by Pub. L. 95 113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95 113, set out as a note under section 1307 of this title.
Transfer of Functions
Powers, duties, and assets of agencies, offices, and other entities within Department of Agriculture relating to rural development functions transferred to Rural Development Administration by section 2302(b) of Pub. L. 101 624.
Construction of 1991 Amendment
Section 516(f)(2) of Pub. L. 102 552 provided that: "Subsection (b) of section 501 of the Food, Agriculture, Conservation, and Trade Act Amendments of 1991 (Public Law 102 237;
Section Referred to in Other Sections
This section is referred to in sections 1926, 1929a, 1932, 1941, 1946, 1947, 1991, 1992, 2008f of this title.